Steve Wynn's Expensive Breakup

Two years ago casino magnate Steve Wynn and Kazuo Okada, who made his fortune supplying equipment to Japan’s huge pachinko industry, appeared to be the best of partners. Okada had invested in Wynn Resorts in 2000, eventually amassing a 20 percent stake and serving as the company’s vice chairman. Wynn had named fancy restaurants at some of his casino hotels Okada.

But in early February, Wynn Resorts pulled the name from the Las Vegas eatery and forcibly redeemed Okada’s ownership stake after investigators for its board said the investor, chairman of Tokyo-based Universal Entertainment, allegedly made improper payments to Philippine gaming regulators. Wynn Resorts then issued Okada a $1.9 billion promissory note for his holdings, effectively booting him from the company. That’s $870 million less than the $2.77 billion stock market value of Universal’s Wynn shares. Okada told Bloomberg that he wasn’t aware that Wynn Resorts had in 2002 amended its articles of incorporation to enable it to declare shareholders “unsuitable” and redeem their shares at a price determined by the company.